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Investors follow transactions at the Ha Noi Stock Exchange. - VNS Photo Viet Thanh |
Investors rushed to sell OGC at bottom price last Thursday following speculation of administration intervention. Later that day, the State Bank of Viet Nam announced that Ha Van Tham, chairman of Ocean Bank, one of OGC's financial arms, "seriously violated legal regulations".
Police investigators specified that he had breached the ruling on lending activities.
OGC said its operations remained normal, and the company would gain more profits than expected. But Tran Duc Anh, Bao Viet Securities Company analyst, predicted the news to continue to weigh on the stock price.
At the HCM City Stock Exchange, the VN-Index added one per cent over the previous Friday's close, reaching 591.51 points because of impressive gains on Tuesday.
Transaction value averaged VND1.9 trillion (US$89.6 million), a 24-per cent week-on-week decrease, on a daily volume of 103.2 million shares.
GAS boosted trading on the bourse in the first two days but was also one of the reasons for the slump in the following sessions.
Meanwhile, the HNX-Index at the Ha Noi Stock Exchange lost by 0.68 per cent to reach 87.05 points. The average value and volume of trade fell around 20 per cent to reach VND790.4 billion ($37.2 million) and 58.8 million shares.
Last Friday, demand for low priced shares nearly matched selling activities. However, caution remained as seen in declining liquidity and buyers' hesitation.
Foreign investors sold a net of merely VND33.4 billion ($1.5 million). Their activities had no effect on the market last week.
According to Maritime Bank Securities analyst Trinh Thi Hong, the VN-Index will test its support of 575 to 580 points this week.
"With the recent movements, I think shares will continue to decline in the coming week," Hong said, adding, however, that investors may consider buying stocks in Duc Long Gia Lai furniture company, Phu My Fertiliser and Thong Nhat Production and Investment, as well as Ba Ria Thermalpower and Tri Viet Investment.
Supportive economic factors such as the slower consumer price index (CPI) increase were not enough to push the stock market. The nation's CPI in October increased by only 0.11 per cent month-on-month. In the first 10 months of 2014, the CPI increased by 2.36 per cent, the lowest in the last 11 years.
Petrol price was reduced for the eighth time in three months, with total reduction at VND3,300 per litre.
According to the European Chamber of Commerce in Viet Nam, European Union companies gave a more favourable review of the country's business climate.
FPT Securities Company said these factors had already influenced share prices in previous rallies, but such support was currently absent from the market.
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